KEY PROPERTIES DEVELOPERS LTD

Executive Summary

Key Properties Developers Ltd is a micro-entity showing early signs of financial improvement with positive net current assets and modest net equity. While the company demonstrates adequate short-term liquidity, its overall financial base remains thin with notable long-term liabilities. Credit approval is recommended with conditions and close future monitoring of financial performance and liquidity.

KEY PROPERTIES DEVELOPERS LTD - Analysis Report

Company Number: 13120976

Analysis Date: 2025-07-20 12:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Key Properties Developers Ltd is a micro-entity with limited financial history since incorporation in 2021. The latest accounts show positive net assets and current net assets, indicating some short-term liquidity. However, net assets remain modest at £8,038, and the company carries long-term liabilities (£34,139) relative to its asset base. The business is small-scale and still establishing its financial footing, so credit extension should be modest and closely monitored. Approval is recommended with conditions including regular financial updates and limits aligned to current asset coverage.

2. Financial Strength: The balance sheet shows total current assets of £42,850 against current liabilities of £673, yielding a strong net current asset position (£42,177). After accounting for creditors due after one year (£34,139), net assets are £8,038, up from £37 in the prior year. The increase in net assets signals some improvement, but absolute equity remains low, reflecting a very small capital base (£1 share capital) and likely limited retained earnings. The company employs 5 staff, indicating operational activity beyond a sole proprietor. Overall, financial strength is minimal but improving.

3. Cash Flow Assessment: Current assets primarily include cash and short-term receivables, supporting liquidity for immediate obligations. Current liabilities are minimal, suggesting no pressing short-term financial stress. However, the presence of significant creditors due after more than one year suggests some longer-term debt or payables that must be managed prudently. Working capital levels are healthy, but given the micro-entity scale, cash flow volatility could be a risk. Ongoing monitoring of cash conversion cycles and debtor collections is advised.

4. Monitoring Points:

• Track net assets and equity growth to ensure strengthening financial resilience.
• Monitor creditor balances, especially long-term liabilities, for repayment capacity.
• Review turnover and profitability trends as they mature beyond micro-entity scale.
• Watch liquidity ratios and working capital to avoid cash flow bottlenecks.
• Confirm ongoing compliance with filing deadlines and absence of director disqualifications.